1. Definition of leverage
Leverage allows exposure of an amount larger than the capital actually committed. It magnifies potential gains and potential losses to an equal extent. [MAX LEVERAGE PER INSTRUMENT CLASS — INSERT]
2. Initial margin
Initial margin is the amount required to open a position, calculated as a percentage of notional value depending on the instrument and client category. [INITIAL MARGIN REQUIREMENTS — INSERT]
3. Maintenance margin
Maintenance margin is the minimum level of capital that must remain available to keep positions open. [MAINTENANCE MARGIN LEVEL — INSERT]
4. Margin Call
When the margin call level is reached, you are invited to top up margin or reduce exposure. This notice is not a precondition for stop out. [MARGIN CALL LEVEL]
5. Stop Out
When the stop out level is reached, positions may be closed automatically, in whole or in part, to bring margin back within the required limits. [STOP OUT LEVEL]
6. Liquidation of positions
Closure for insufficient margin occurs at the market prices available at the time of execution, which may be unfavourable, and may not follow a predetermined order among open positions.
7. Change in margin requirements
Margin requirements may be changed, including with effect on open positions, in the event of increased volatility, reduced liquidity, corporate events or regulatory changes. Where possible, changes are communicated with notice.
8. Extreme volatility and market gaps
In abnormal market conditions or in the presence of gaps, margin call and stop out mechanisms may not prevent significant losses and positions may be closed at prices materially different from those expected.
9. Overnight positions
Holding positions beyond the trading day is subject to financing costs and a specific risk profile, described in the Risk Disclosure and the Charges and Fees document.
10. Client responsibility
It is your responsibility to monitor available margin and your positions at all times. ASTEO is not obliged to send prior warnings and the absence of such warnings does not relieve you of the effects of stop out.
Questions on this document?
Write to our Compliance function at compliance@asteo.eu or to our Data Protection Officer at dpo@asteo.eu. Postal correspondence: ASTEO LUXEMBOURG S.A., 120 Boulevard de la Pétrusse, L-2330 Luxembourg, Grand Duchy of Luxembourg.
This document is provided for information purposes and constitutes a professional draft pending validation by ASTEO's Legal and Compliance function. In the event of any discrepancy between language versions, the English version prevails unless mandatory local law requires otherwise.
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